The use of financial leverage may permit the firm to increase the return on equity.
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Q33: If accounts receivable are collected, the quick
Q34: The higher the "times‑interest‑earned," the safer (i.e.,
Q35: The numerical value of the quick ratio
Q36: Increases in income taxes reduce a firm's
Q37: The DuPont system combines liquidity and earnings.
Q39: If inventory is sold on credit, the
Q40: Leverage ratios indicate the extent to which
Q41: Operating income does not consider
A) depreciation
B) cost
Q42: Equity includes
A) cash
B) investments
C) retained earnings
D) assets
Q43: When an asset is depreciated,
A) its cost
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